Dodd draws fire for tortured tale

Sen. Chris Dodd (D-Conn.) could have prevented a media firestorm by giving a simple explanation about why Congress couldn’t stop AIG executives from receiving lavish bonuses — and about his role in the ongoing brouhaha.

But the confusing way in which the Banking Committee chairman has handled an issue that has turned into political nitroglycerin has many people on Capitol Hill scratching their heads — and venting their anger at Dodd.

Story Continued Below

The questions center on a tortured chronology. Initially, Dodd deflected blame about changing legislative language that allowed the big bonuses to go forward — but later acknowledged that he did alter the provision. Also inexplicable: why Dodd would struggle to explain the issue by himself for nearly 24 hours before Treasury Secretary Timothy Geithner admitted that he was the one who urged Dodd to make the changes.

Many observers, including some of Dodd’s Senate colleagues, also question the strategy of airing these seemingly conflicting statements on live television — rather than in a joint Dodd/Geithner statement — since now his televised comments will almost certainly be used in campaign attacks against him in his 2010 Senate race.

“His first mistake was going on live TV,” a Senate aide said, referring to Dodd’s explanation of his role to CNN Wednesday night.

“Everybody is outraged about [the bonuses],” said Sen. George Voinovich (R-Ohio). “The real fire and pressure should be put on Sen. Dodd and Geithner, who knew about it.”

Dodd supporters say this, too, shall pass. “He has been under siege for so long,” said Senate Majority Whip Richard J. Durbin (D-Ill.). “It’s unfortunate that this situation has reached the point that it’s reached. ... He’s a very competent, honest person, and I think at the end of the day, he’ll be just fine.”

Still, the damage, at least in the short term, has been done for a senator who is already slumping in the polls and who faces questions about his role in the banking crisis and a low-interest mortgage scandal back home.

On Thursday, Dodd became prime fodder on the cable talk shows as he became a poster child for the AIG bonuses tempest — even though he was the senator who initially pushed for tough restrictions on compensation for bailed-out firms during conference negotiations on the stimulus package.

See Also

His website crashed. His phone lines jammed. And top members of Congress were quick to suggest that questions about the matter should be directed to Dodd.

“If you want to talk about what happened in the Senate, go to the Senate and talk to them,” House Speaker Nancy Pelosi (D-Calif.) said when asked about her possible involvement with the weakened “clawback” provision, which was approved by both chambers as part of the stimulus conference report.

Senate Majority Leader Harry Reid (D-Nev.) said that, without Dodd, “there would be nothing in this legislation” on executive compensation limits. But when pressed about how the language was weakened in conference, he directed reporters’ inquiries to Dodd.

“I think what you should do is talk to Sen. Dodd,” Reid said.

But Dodd wasn’t much in the mood to talk — he avoided a crush of reporters as he scurried into the Senate to cast votes. And his press office did not respond to an inquiry seeking comment.